Non-profit organizations can be awesome, but unlike running a for-profit business, there are accounting checks that must be done to stay in compliance with government laws and rules.
And for small non-profit organizations, that can be a challenge. Fewer staff members and smaller budgets can mean less resources for making sure your non-profit is in compliance but if you skip this step, you could put your status in jeopardy.
Here are three quick accounting checks to do today to see if your non-profit is in compliance. Read on:
Clear roles for non-profit organizations
One of the easiest things you can do is to set – and enforce – clear roles for those who work for you. And make it known that everyone has to follow the rules. It’s easy to get lax in a small environment, but by making sure everyone follows the rules and stays in his or her lane workwise (like everyone must get expenses approved and fill out time sheets – even the top management) you will keep things running smoothly and in compliance.
Trust your employees, but take proper security precautions as well. Good old-fashioned locks on drawers and password protections on cell phones, computers and other devices will go a long way toward keeping your information, funds and other key data in compliance because you’ll know who accessed it – and when.
Also, use the buddy system for money transactions. Counting cash from a fundraiser? Two (or three) employees do the work. Have a check that needs cashed? Two (or three) handle that task.
Sometimes, it’s worth the money to hire an outside bookkeeper to look over or periodically review bank statements, payroll etc. By keeping constant tabs on your cashflow – and having an outsider with no skin in the game looking over them – you are more likely to catch mistakes and problems early.
At AccuNet, our Business Systems department can answer your questions about non-profit compliance and best practices. Contact us today.